Research Update: Moscow United Electric Grid Upgraded To 'BB' On Modest Expected Debt, Improved Liquidity; Outlook Stable, Off Watch Pos Feb 13
- ID: 2417849
- February 2013
- Standard & Poors
We think that the medium-term tariff structure approved by the regulator for Russia-based electricity distribution utility Moscow United Electric Grid Co. (MOESK) in November 2012 somewhat reduced regulatory uncertainty and will in our view support sound cash flow generation and modest debt leverage. We also note improvements in the company's liquidity, and have revised our assessment of that factor to "adequate" from "less-than-adequate." We are therefore raising our assessment of MOESK's stand-alone credit profile to 'bb-' from 'b+', and in turn the ratings to 'BB/ruAA' from 'BB-/ruAA-'. We are also removing the ratings from CreditWatch with positive implications. The stable outlook reflects our view that MOESK's key credit metrics and liquidity will likely remain commensurate for the ratings. On Feb....
Companies mentioned in this report are:
- Moscow United Electric Grid Co. JSC
Action: Outlook: Stable
Action: Removed From CreditWatch
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Product Type: Research Update
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